Bellevue council directs staff to draft tax‑increment financing plan for Grand Connection crossing

Bellevue’s City Council directed staff to prepare an ordinance establishing a tax‑increment financing (TIF/TIFF) area to help pay for the Grand Connection crossing, a roughly half‑mile pedestrian and bicycle connection across Interstate 405 designed to link downtown Bellevue with the East Rail corridor and four light‑rail stations.

Deputy City Manager Jennese Atkins told the council the city pursued a legislative change that allows a larger base assessed value for a TIFF district and then worked with the state treasurer’s office and taxing jurisdictions to model development scenarios. Chief Financial Officer John Risha said staff used a conservative ‘limited buildout’ scenario and estimated the TIFF could generate about $84.4 million in incremental property tax revenue over a 25‑year period under that scenario.

Atkins and Risha stressed that the TIFF captures growth in assessed value while preserving school levies; Risha explained that the existing base assessed value remains with existing districts while the increment above the base would flow to Bellevue’s project fund until debt associated with the crossing is paid.

The city reported broad participation commitments from overlapping taxing authorities needed under state law for the expanded TIFF base, including King County (and its EMS and Flood Control districts), the King County Library System, the Port of Seattle, and Sound Transit. Atkins said several jurisdictions voted in April and one (King County) acted the day of the meeting, enabling the city to proceed to ordinance drafting.

Supporters who spoke during public comment described the crossing as a regional mobility and equity investment. Tim Carr, CEO of the Bellevue Convention Center Authority and chair of the Bellevue Downtown Association, said the crossing will “reconnect our city, increase mobility and accessibility, and provide a critical link” to a regional trail network. Katherine Hollis of East Trail Partners said the crossing will tie downtown to a 42‑mile rail‑to‑trail corridor and increase access for households without cars.

Council members confirmed they want contingencies and conservative finance assumptions. Risha said staff used the most conservative scenario in the treasurer’s review and that the city retains general‑fund capacity and other debt‑management tools if development proceeds slower than projected. Council members asked about the risk if a participating jurisdiction reversed course; staff said the statute requires participating jurisdictions to take the legislative action and the city’s submittal will include certified participation actions.

The council voted unanimously to direct staff to prepare the TIFF ordinance for consideration at a future meeting. Next steps include drafting the ordinance, finalizing district maps and legal documents, and returning to council with the ordinance and the financing plan.